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Investing.com - H.C. Wainwright raised its price target on Cipher Mining (NASDAQ:CIFR) to $17.00 from $7.50 on Monday, while maintaining a Buy rating on the cryptocurrency mining company. The stock, currently trading at $12.13, has shown remarkable momentum with a 394% surge over the past six months.InvestingPro analysis reveals 17 additional key insights about Cipher Mining, including detailed profitability forecasts and valuation metrics. Access the comprehensive Pro Research Report for deeper analysis.
The significant price target increase reflects a shift to a sum-of-the-parts valuation methodology, replacing the previous approach that solely applied a market cap to revenue multiple for the Bitcoin mining business.
H.C. Wainwright applied a 6.5x revenue multiple to its 2026 revenue estimate of $480 million for Cipher’s Bitcoin mining operations, noting the company deserves a premium to peers due to its "best-in-class direct production costs."
The new valuation also incorporates an 8x revenue multiple for contracted annual revenue from the Fluidstack colocation agreement for Cipher’s high-performance computing (HPC) business, at a discount to traditional data center operators to account for execution risk.
H.C. Wainwright’s model assumes Cipher will convert 10% of its 2.4 GW development pipeline for future HPC/AI opportunities, while noting potential risks including Bitcoin price volatility, network hash rate increases, construction delays at the Barber Lake site, and possible shareholder dilution from equity raises.
In other recent news, Cipher Mining has announced the pricing of a $1.1 billion convertible senior notes offering, which was increased from a previously announced $800 million. These zero-interest notes are due in 2031 and are part of a private offering to qualified institutional buyers. Additionally, Google is set to acquire warrants for approximately 24 million shares of Cipher Mining as part of a 10-year AI hosting agreement with Fluidstack, giving Google a 5.4% pro forma equity stake in the company. This agreement also involves Google backstopping $1.4 billion of Fluidstack’s lease obligations for project-related debt financing.
Cipher Mining’s first high-performance computing (HPC) colocation agreement with Fluidstack is expected to generate approximately $3 billion in contracted revenue over a 10-year term. Following this development, Keefe, Bruyette & Woods raised their price target for Cipher Mining to $13, maintaining an Outperform rating. Similarly, Rosenblatt Securities increased their price target to $14, describing the HPC contract as a "transformation transaction" for Cipher Mining. These developments reflect the company’s strategic shift from Bitcoin mining to becoming an HPC hosting provider.
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